A blog devoted to Reno's economic recovery

The big comeback: How to get companies that have left Reno to return

Nate Ashley, who left to work for Apple, is now back in Reno with a startup business called BHeard. (Photo by Marilyn Newton/RGJ)

One question whose answer could help Northern Nevada’s economy is: Why do companies and bright people leave Reno?

If we knew, maybe we could keep some from leaving in the first place.

But perhaps a better question is: Why do they come back?

If we understood that, the knowledge could be used to combat the initial exodus — but also to help bring back those who leave for unavoidable reasons.

Flower power

Myers Industries has a number of locations, including one in Sparks, where it manufactures “horticulture containers,” aka plastic flower pots.

In 2009, it shuttered the facility.

Earlier this year, it announced it was coming back.

Chris Koscho, vice president and general manager of Myers’ lawn and garden segment, said the 2009 closure was due to the recession of the previous two years.

To deal with the uncertain West Coast market for garden supplies, he said, “we closed a couple of factories and expanded a couple of others.”

Joe Sayers works at Myers Industries’ facility in Sparks, which it reopened this year after closing it in 2009. (Provided photo)

The company relocated the duties that had been done in Sparks to Texas.

Mike Kazmierski of the Economic Development Authority of Western Nevada said this is the main reason companies leave Reno-Sparks.

“We have not, to my knowledge, lost a company to another state in the last two years,” he said. “We have lost jobs to consolidation. If a company has locations in other states, they may shrink down to two locations — we have lost jobs to those consolidations. They don’t pick up and move to another area for business reasons because the business case for staying here is so strong.”

Supporting the return

Koscho said there was nothing the Reno-Sparks business community or governments could’ve done to help.

The closure was “unavoidable,” he said.

But their support did bring the company back.

“As we looked to relocate, the Nevada local and state government was very supportive of manufacturing,” Koscho said. “We met several times with state leaders, and the support and ease of doing business in Nevada was a bright spot in comparison to other places to do business.”

He said Myers Industries looked specifically into locating in Oregon, California and surrounding states to service the West Coast market.

The company had held onto the Sparks building.

“We were prepped to sell the Sparks facility so the actual building was not as big a factor,” Koscho said. “It was really about the best way to serve the market, coupled with support from local and state government. Starting a facility of this size, finding talent and training the talent — Nevada was far ahead in recognizing that need and supporting that need.”

Reno-Sparks had enough skilled and unskilled workers to fill its needs.

“And the local community colleges could support in time the more technical and skilled positions needed as we partner to move forward,” he said.

Deeper roots

EDAWN’s Kazmierski hopes to help companies establish deeper roots in Reno-Sparks so that when downturns inevitably come, it’s here where they retrench to.

“We as a community didn’t have a very good retention program when the economy was good,” he said.

“Myers and others were given offers to go other places, and those offers looked good. We didn’t have an effective retention program to grow deep roots here so, in many cases, they took those offers or expanded to other locations.

“A lot of companies realized the deal was not as sweet as it seemed, and they came to appreciate what a great place Reno-Sparks is to do business, and in some cases, they came back.

“To get out in front of that, we’re putting in place a very hands-on retention program that’s been in place two years. We’re visiting primary employers, meeting with executives, and addressing problems if they have problems and making sure they know how important they are to our economy.

“That’s why we started the local industry awards events every October. It’s a chance to recognize our existing industries and highlight how important they are to the community. The companies we have now make up the fabric of our community, and we need to do everything we can for them to grow where they are so we don’t lose them.”

Apple lure

Nate Ashley went to Reed High in Sparks. His leaving was probably unavoidable, too.

“I’d grown up here and was ready to live in new cities and try new things,” he said.

He got the opportunity to work for Apple, which moved him around the country to oversee various operations in its education division. A 2010 promotion allowed him to move anywhere in the West.

“Some of the potentials were the Bay Area or Denver, but frankly it made more sense to hub out of Reno because (the job) covered 13 states,” he said. “I enjoy living in Reno and really wanted to go back to Reno.

“Earlier this year, I stopped working with Apple and wanted to turn my attention to doing my own thing, and I worked with individuals to create BHeard, and that’s what I do full-time now.”

BHeard has created a smartphone app that helps nonprofit and advocacy organizations communicate more effectively with members and supporters.

Ashley said there was always a pull to come back.

“Between Tahoe and the weather and being a smaller city and much higher quality of life, there were reasons to root again in my hometown,” he said.

“In my travels, I’ve lived in a lot of larger metropolitan cities and star communities and venture capital communities such as the Bay Area, but given the size we are, we are incredibly close-knit — simply because of the proximity to each other — and that helps to get a lot more done. Relationships here are more effective.”

He sees a lot of resources here and activity that is getting noticed outside the area — and that bodes well for the future.

“EDAWN — they’re helping to bring capital into the city and awareness outside the community about what’s going on here,” he said.

“Between the time of Apple and starting this, I had the opportunity to go elsewhere, but once you get exposed to what’s going on here with the startup community, there’s a lot of activity and excitement and startup accelerators. That helps. It’s a draw for folks in other cities.”

Dropbox

Tony DiVincenzi

Tony DeVincenzi is also from Reno — he went to Reno High and still visits a few times a year. And he’s also noticed entrepreneurial excitement here.

“It looks to me like a strong community is forming for startups,” he said. “Startup Reno seemed to have a lot of energy and passion behind it (at its November event), and it seemed really honest. The folks that were participating were totally into it, and it shows you have the right people to build that community and take it further.”

DeVincenzi left and, for the foreseeable future, has no plans to return.

He went to the Massachusetts Institute of Technology and launched a company earlier this year called Sold with two partners. It allowed people to sell things merely by taking a picture and writing a description — Sold would then find a buyer, send a packing box with a scheduled pickup and deposit money in your account.

The company was soon bought by the web-based hosting service Dropbox, which didn’t want the company itself but the talent who created it. DeVincenzi and his partners now work as a team on Dropbox projects in San Francisco.

He’s happy doing what he’s doing and prefers living in a large metropolitan area. But he says for Reno to lure people like him, it needs to have like-minded people who also want to start businesses so they can learn and grow from one another.

“That’s crucial for a healthy ecosystem of entrepreneurs,” he said.

And, he said, a little financial support for startups is important to help them get off the ground.

“If I were Reno,” he said, “I’d say hook up with UNR and get that school feeding entrepreneurs who have a mind for that sort of thing and give them space so they have a shared workspace, and then say ‘we will compensate them by paying the company 20 grand and we won’t take equity, but we want them to stay here because they’re building a community.’ And if they stay here, others will come.”

Reno love

Unlike Ashley and DeVincenzi, Kristin Stith isn’t from here. She’s from Southern California and moved here on a softball scholarship at the University of Nevada, Reno.

Kristen Stith (provided photo).

“I didn’t even know where Reno was when I was getting recruited,” she said.

She lived here six years and went back.

“I missed it so much that I decided to come back here with no job and just decided to join the MBA program at UNR,” she said.

“I didn’t come back to Reno for a certain person or job. I just moved back here for the town in general because I knew I wanted to grow roots in Reno, as a young professional and a young woman.

“I just didn’t fit in and it wasn’t welcoming in Southern California. My parents were like, ‘Why are you moving back to Reno? It has the highest unemployment in the nation.’ And I said, ‘Mom and Dad, I don’t know why, I just know I want to move back.’

“There are so many wonderful things when I talk about Reno: the outdoor recreation, the surrounding cities, the people who live here. I think there’s more of an emphasis on the important things in life — friends and family — in Reno.”

I grew up in Reno, I was so excited when I could get the hell out of dodge and went to school in Salt Lake... oh, there is nothing like spending a few years in Salt Lake to convince you of how great things are in Reno. Compared to Salt Lake, Reno is an incredibly clean city, the people are unmeasurably more friendly, there is 24 hour convenience that is unheard of in other cities 4 times the size of ours, free parking is bountiful, traffic, while problematic at times, is manageable... and as bad as our politicians are, at least we don't have a level of corruption where a governor can be caught accepting a bribe, spend $13 million of state money to try to cover it up, get caught anyway, and still get reelected because he was still the better of the two options.

My wife and I moved to Reno a year and a half ago. We absolutely love the outdoor lifestyle and the convenience. It's also very affordable to live here and companies are starting to expand offering better professional opportunities. We lived in Indianapolis with very little outdoor recreation, higher taxes, heavier traffic, and less friendly people. Reno is a definitely a hidden gem.

Entrepreneurs, young professionals, and/or skilled specialists that have families will prioritize the quality of education above many other factors. Until concrete, longer term solutions are established, this will hobble the area's full potential.

I lived in Reno 52 years ago for 18 months,It was one of the best memories of my life. I usually go back every couple of years and visit I love Reno. If I had an opportunity I would have a second home there. Reno is a beautiful area.